| Abstract: |
The purpose of this article is to analyze the complementary relationship
between the Islamic Bank of Senegal (BIS) and microfinance institutions (MFIs)
and their contributions to the inclusive and sustainable financing of
Senegalese SMEs. Indeed, in Senegal, the SMEs that make up almost the entire
productive sector, 99.8% of the economic fabric, 3450.3 billion FCFA of
turnover and more than 45% of the active population in 2016 (ANSD / RGE,
2016), have great difficulty in obtaining external and formal financing. The
Senegalese financial system, which is predominantly dominated by banks and
MFIs, gives SMEs a very limited chance to access financing. This is because
the financing needs of SMEs are too important for MFIs but too low for banks
to respond optimally to their needs. In addition, the banking sector, which
has sufficient liquidity, is struggling to obtain financing mechanisms that
are appropriate to the needs of SMEs. On the side of MFIs that have the
appropriate financing tools, they are unable to find significant resources to
meet the demand for funding of large SMEs. In this momentum, the
complementarity between Islamic banking and MFIs seems to be the most
appropriate and effective solution to address the financial difficulties of
SMEs. Indeed, the research hypothesis of this article is that the refinancing
partnership between these two financial structures favorably affects the
financing of SMEs. Our panel data estimates confirm our main research
hypothesis because they show positively and decisively the role of the
complementarity relationship between these two financial institutions on the
financing of SMEs. |